Banking Sector's Support Moves Intensify Amid COVID-19 Resurgence

[Asia Economy Reporter Sunmi Park] As the number of new confirmed cases of the novel coronavirus infection (COVID-19) continues to exceed 300 daily, banks have become busy supporting small and medium-sized enterprises (SMEs) and small business owners affected by COVID-19.

Shinhan Bank Supports Online Education Programs for Self-Employed

According to the financial sector on the 22nd, Shinhan Bank launched support for education through online programs as many face-to-face education programs for self-employed individuals were suspended due to the spread of COVID-19.

Shinhan Bank held the opening ceremony of the 'Shinhan SOHO Academy 13th Class' via live broadcast on YouTube to strengthen the business operation capabilities of self-employed customers and support startups. Thirty self-employed and prospective startup customers selected through motivation and business plan evaluations will receive education from the previous day until October 16 on topics including ▲branding and storytelling ▲14 strategies to increase sales ▲secret know-how of our store ▲strategies to open customers' minds ▲understanding behavioral economics.

Since its inception in 2017, Shinhan SOHO Academy has provided education on marketing, branding, operational know-how from senior self-employed entrepreneurs, and tips to increase sales through various assignments and practical exercises for students engaged in diverse industries such as restaurants, lodging, and hospitals.

Jeong Duyong, a customer attending the online opening ceremony (Hanam, Gyeonggi Province, restaurant operator), expressed gratitude, saying, “During these difficult times due to COVID-19, support for education programs was desperately needed, and I am glad to have this valuable opportunity.” A Shinhan Bank official stated, “We will do our best to provide not only financial support but also non-financial support such as education and consulting programs for self-employed customers facing difficulties.”

Woori Bank Launches ‘Woori Jungjingong Together Loan’ Financial Support Product for SME Innovation Growth

On the 21st, Woori Bank launched ‘Woori Jungjingong Together Loan,’ a financial support loan product for SME innovation growth, in collaboration with the Small and Medium Business Corporation (SBC).

‘Woori Jungjingong Together Loan’ is a collaborative loan product designed to provide broader policy funds to SMEs by lowering interest rates through SBC’s policy funds and expanding loan limits with bank funds.

Applications are possible through recommendations for collaborative loans via SBC. In line with the Korean New Deal policy, companies creating jobs can receive preferential loan interest rates 1.3 to 2.0 percentage points lower than the basic calculated rate based on factors such as automatic transfer records of the four major insurances and the number of regular employees. For facility funds acquired by securing office real estate such as knowledge industry centers and smart factories, up to 85% of the required funds can be supported.

A Woori Bank official said, “Woori Jungjingong Together Loan is an innovative financial leading product supporting innovative growth SMEs in collaboration with SBC, and it will be of great help to SMEs going through difficult times due to COVID-19 and other challenges.”

IBK Industrial Bank Lowers Interest Rate of ‘Second Financial Support Loan for Small Business Owners’ to 2.8%

IBK Industrial Bank has lowered the maximum interest rate of the ‘Second Financial Support Loan for Small Business Owners,’ executed through internet and mobile banking, from the previous annual rate of 3-4% to 2.8%. Regardless of the credit rating of small business owners and self-employed individuals, if the loan interest rate exceeds 2.8%, an interest rate of 2.8% will be applied. The total loan amount subject to the interest rate cap is 100 billion KRW.

Since June, IBK Industrial Bank has enabled all processes of the ‘Second Financial Support Loan for Small Business Owners,’ including loan application, guarantee issuance, and loan execution, to be completed without visiting a branch via internet and mobile banking. An IBK official said, “We decided to lower the interest rate cap to reduce the financial burden on small business owners struggling due to COVID-19,” adding, “We will continue to strive to provide effective funding support for SMEs and small business owners.”

This content was produced with the assistance of AI translation services.